AUB Group Business Model Canvas

Underwriting agencies and MGAs, where AUB holds equity stakes and distribution agreements, extend product breadth and accelerate time-to-market; AUB Group reported FY24 revenue of AUD 1.03bn and NPAT ~AUD 120m, reflecting distribution leverage. Agencies supply niche underwriting expertise and differentiated propositions, feeding portfolio feedback loops that refine pricing and risk selection. Shared data across partners improved loss ratios and strengthened capacity negotiations in 2024.

Core brokers 1,000+ across Australia/NZ form AUB Group’s distribution backbone; AUB supplies governance, operational support and growth capital to align incentives. Carrier, reinsurer and MGA partnerships secure capacity, delegated authority and diversification; FY24 revenue AUD 1.03bn, NPAT ~AUD 120m. Technology and regulator partners cut quotes ≤30%, boost cross-sell and compliance across 1,300+ broker partners.

In 2024 AUB Group oversees MGA portfolios to protect profitability and retain carrier capacity via disciplined limits and reinsurer coordination. Pricing governance, clear referral rules and regular audit cycles sustain margins and regulatory compliance. Real-time claims triage feeds underwriting adjustments while data-driven performance reports are delivered to carriers and partners to optimize portfolio outcomes.

Onboarding, coaching and shared services lifted broker performance; AUB supported 1,000+ broking partners in 2024 with double‑digit productivity gains and ~20% faster time‑to‑quota. Central teams manage placements, MGA portfolios and claims, leveraging ~3,000 employees. Tech builds target ~90% carrier API coverage and ~20% cross‑sell uplift; acquisitions and earn‑outs expand distribution.

AUB Group (ASX: AUB) leverages broker portals, placement systems and analytics platforms to streamline distribution and underwriting as of 2024. Centralized data warehouses enable real-time pricing insights and cross-sell targeting across channels. Integration middleware standardizes workflows while cyber and compliance tooling reduce operational and regulatory risk.

AUB Group’s key resources combine ownership of ~170 brokerages and ~30 MGAs (2024), carrier panels and placement facilities, centralized tech stacks and data warehouses, plus ASX listing and AFSL/NZ licences that secure capacity, compliance and partner trust; leadership depth and training academies retain specialist distribution and underwriting talent.

Centralized finance, HR, marketing and compliance cut unit costs — industry studies report up to 30% savings — while standardized processes improve service consistency and reduce error rates. Targeted training and digital tools boost producer productivity by roughly 15–20%. Partners reclaim ~20% of time previously spent on back-office tasks, enabling greater focus on client acquisition and growth.

AUB Group delivers faster, broader specialty placements with delegated authority cutting turnaround to 48–72 hours, supporting cross-Tasman growth and niche capacity. Equity-aligned partner model (AUB market cap ~AU$4.2bn in 2024) aligns incentives and de-risks succession while returning capital. Centralized ops drive up to 30% cost savings and boost producer productivity ~15–20%, freeing ~20% partner time for growth.

Enablement and training programs combine sales, technical, and compliance curricula to lift frontline and back-office capability, with vendor-led sessions preserving up-to-date market and product knowledge. Clear accreditation pathways boost staff motivation and retention, while communities of practice enable rapid sharing of best ideas and case studies across business lines. These initiatives align skill development with customer outcomes and risk controls.

Partner-led governance, regional RMs and enablement programs deliver aligned incentives, single-point escalation and accredited training to boost retention and capability. Real-time dashboards and portfolio heatmaps (updated 2024) drive underwriting, conversion and margin oversight. Proactive renewal playbooks lifted renewals >10% in 2024 while targeted cross-sell drove mid-single-digit ARPC gains.

Joint roadshows and underwriting summits align carrier and broker priorities, leveraging AUB Group (ASX:AUB) and its network of over 250 offices to coordinate capacity and pricing. Facility launches at these forums drive awareness and supported hundreds of firm placements in 2024. Executive roundtables resolve friction points, shortening deal cycles by weeks. Thought leadership elevates AUB’s profile and accelerates uptake.

Primary routes: 1,300+ broking/MGA network and 250+ offices drive distribution and retention in 2024. Broker portals and APIs enable real-time quoting, reducing manual steps and improving speed. Events and thought leadership delivered ~30% of B2B partnership leads in 2024 and funded hundreds of firm placements. Targeted outreach and founder-aligned deals sustained acquisitive growth through 2024.

End-clients receive tailored cover and hands-on claims advocacy via brokers, targeting trades, healthcare, corporate and specialty sectors. Clients prioritize speed, competitive pricing and specialist underwriting expertise. Served indirectly through AUBs broker network, leveraging intermediated distribution. SMEs account for ~98% of Australian businesses (ABS 2024), underscoring market scale.

Member brokers, underwriting agencies/MGAs, carriers/reinsurers, end clients (notably SMEs) and allied service providers form AUB Group’s customer segments, with FY2024 underlying NPAT A$118.1m. MGAs drove specialty growth (≈16% of US specialty P&C premiums 2024); SMEs are ~98% of Australian businesses (ABS 2024). Carriers target loss ratios ~60–70% and ROE mid–high teens, valuing governance, panels and data-driven distribution.

Compliance and regulatory costs cover licensing fees, external and internal audits, and conduct risk programs, with 2024 industry trends showing elevated spend on remediation and monitoring. Advice and professional indemnity insurance premiums rose materially amid heightened claims activity. Ongoing monitoring, remediation and legal counsel represent recurring operational costs. Continuous policy and control updates require dedicated governance resources and tech investment.

Salaries, commissions and retention schemes drive costs (compensation ~50% of operating expenses in 2024 peers). Tech spend is platform-first with cloud 25–35% of IT budgets and cybersecurity 10–15% of tech spend (2024). Compliance, PI insurance and remediation costs have risen materially; M&A fees ~1–3% of deal value with earn-outs 10–30%.

Distributions from owned brokers, MGAs and affiliates delivered steady dividends and profit shares in 2024, funding acquisitions and organic investment while incentivising management through aligned ownership. Alignment encourages reinvestment and disciplined growth across the group, preserving capital discipline. A diversified portfolio of underwriting and broking income smooths cash flows. Strong governance rights across holdings protect shareholder returns and downside exposure.

FY2024 group revenue AUD 1.06bn with brokerage commissions ~34% (~AUD 360m) driving core income. MGA fees and profit commissions (typical splits 10–20%; profit share when loss ratios < ~60%) boost margins. Value‑add fees, dividends from affiliates and investment income (RBA cash rate 4.35% end‑2024) provide diversified, recurring cashflows.